Use this information to answer all questions in this section.

Mitch Co. bought a new machine on 8/1/25 for $10,000. The machine has a salvage value of $1,000. The machines useful life is estimated at 5 years and it is estimated to produce a total of 500,000 units over its lifetime. Year end for Mitch Co. is 12/31.

Question 1 (3 points)

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Assume Mitch Co. uses the straight-line method to calculate depreciation. How much depreciation expense would Mitch recognize in 2025?

Question 1 options:

	$750
	$1,800
	$2,000
	$2,250

Question 2 (3 points)

Assume Mitch Co. uses the straight-line method to calculate depreciation. How much depreciation expense would Mitch recognize in 2027?

Question 2 options:

	$720
	$1,800
	$2,000
	$2,250

Question 3 (3 points)

Assume Mitch Co. uses the activity method to calculate depreciation. The machine produced 125,000 units 2025. How much depreciation expense would Mitch recognize in 2025?

Question 3 options:

	$1,800
	$2,250
	$2,000
	$2,750

Question 4 (6 points)

Assume Mitch Co. uses the sum-of-the-years-digit method to calculate depreciation. How much depreciation expense would Mitch recognize in 2026?

Question 4 options:

	$3,000
	$2,750
	$2,400
	$2,000

Question 5 (6 points)

Assume Mitch Co. uses the double-declining method to calculate depreciation. How much depreciation expense would Mitch recognize in 2027?

Question 5 options:

	$3,000
	$2,400
	$2,000
	$2,750